Network-Based Sub-Allocation Systems and Methods for Swaps

ABSTRACT

Network-based systems and methods for hosting and operating a network-based platform that allows clients to open and build a portfolio-swap account that is subdivided into a plurality of client sub-accounts or funds. The methods and systems of the invention allow the client to sub-allocate equity-swap transactions among its various client sub-account or funds as the client deems appropriate.

1. FIELD

The invention relates to network-based systems and methods for hostingand operating a network-based platform that allows clients to open andbuild a portfolio-swap account comprising various client sub-accounts.The methods and systems of the invention allow the client tosub-allocate equity-swap transactions among its various clientsub-accounts.

2. BACKGROUND

In general, a swap is an agreement to trade future cash flows based onthe future value of one or more market variables. There are manyvariations and types of swaps. An equity swap is swap with payments onone or both sides linked to the performance of equities or an equityindex. Equity swaps are useful to: (1) initiate and maintaincross-border equity exposures either in an index or a specific stockportfolio; (2) temporarily eliminate exposure to an equity portfoliowithout disturbing the underlying equity position; and (3) increase,reduce, or eliminate market exposure to a single issue or a narrow stockportfolio or obtain greater diversification for a limited period of timewithout disturbing an underlying position.

In a simple equity swap, one party contracts to pay the return ordepreciation on shares of a financial instrument, such as a stock or aderivative. The block of shares is worth an amount based on the marketrate, this is the principal of the equity swap. Since in an equity swapagreement, the parties do not exchange the principal, it is termed anotational principal. In return, the party on the other side of theequity swap agrees to pay a fixed or floating interest on the notationalprincipal.

The first party (the “client”) is generally an entity that desires torealize the gains associated with owning certain equities but eitherdoes not have or want to expend money to purchase the equities on themarket. The second party (the “financier”) is typically a largerinstitution having capital to purchase equities but desires to minimizethe risk of owning the equities. In an equity swap, the financier is ina sense providing the capital for the client to realize the gains orlosses of the equity. Hence, the terms “financier” and “client” are usedherein to make clearer the respective positions of the parties.

In an equity-swap sell transaction, the first party agrees to pay thestock's depreciation, while the second party agrees to pay interest onthe notational principal at a particular interest rate and also pay tothe first party any stock appreciation.

In an equity-swap buy transaction, the first party agrees to pay stockappreciation. In return, the second party agrees to pay interest on thenotational principal and stock depreciation.

For example, say that a financial institution owns $100,000 shares ofstock X. Through financial forecasting, the financial institutionpredicts that stock X will appreciate. The financial institution,however, wants to take on as little risk as possible. So to hedgeagainst possible losses, the financial institution enters into an equityswap as follows. First, the financial institution sells the 100,000shares of stock X at $10.00/share on the open market collecting$1,000,000.00 in cash and invests the $1,000,000.00 at the LondonInterbank Offered Rate (LIBOR) of interest. At the same time, thefinancial institution enters into a sell equity swap with a mutual fundin connection with 100,000 shares of stock X. The financial institutionagrees to pay the mutual fund: (1) some interest rate less than LIBOR ona $1,000,000.00 notational principal; and (2) depreciation on the100,000 shares of stock X's market value. In return, the mutual fundagrees to pay: (1) appreciation of stock X; and (2) a flat fee. Thus,the financial institution has hedged its original sale of stock X on theopen market to the extent of the interest rate differences and the flatfee. And, if as the financial institution predicted, the stockappreciates, the financial institution will realize a gain greater thanif it would have kept the stock and realized the market-rateappreciation. The mutual fund, perhaps predicting depreciation, benefitsbecause it does not have to expend the capital required to transact ashort sale on the market. The mutual fund has also hedged itself againstappreciation of the stock in the event that it was wrong in itsprediction that the stock would depreciate.

Following the facts above, but the financial institution anticipates afall in stock X's share price, the financial institution could hedgeagainst the risk associated with owning 100,000 shares by entering intoa buy equity swap with the mutual fund. In the buy swap, the bank agreesto pay the mutual fund appreciation on the 100,000 shares of stock X. Inreturn, the mutual fund agrees to pay the financial institution: (1) aflat fee; (2) depreciation of stock X; and (3) interest on a notationalprincipal of $1,000,000.00 at the LIBOR rate. If the stock appreciates,the bank is hedged to the extent of the interest rate and the flat fee.On the other hand, if the stock depreciates the bank gains are greaterthan if it simply sold the stock short on the open market. The mutualfund benefits because it does not have to expend $1,000,000.00 of itsown money to purchase 100,000 shares of stock X.

Mutual fund institutions typically have a large number of differentfunds each comprising financial instruments of varying risks, types, andmaturity dates. Thus, the mutual fund managers can offer investorsappropriate funds according to the individual investor's risk-managementstrategy. Accordingly, as the mutual fund enters into equity swapagreements with financial institutions, it must sub-allocate the equityswaps to various funds as appropriate. Typically, the mutual-fundmanager provides the financial institution with instructions tosub-allocate the equity swaps among the mutual fund's various fundaccounts. For example, these sub-allocation instructions might be in theform of a complicated spreadsheet faxed to the financial institution'sappropriate department. Having to provide sub-allocation instructions insuch a manner restricts control and flexibility of the fund manager. Inorder for the fund manager to make complicated sub-allocations, he musttransmit increasingly complicated instructions. It follows that thegreater the number of equity swaps, the less control and flexibility thefund manager has over sub-allocation. An even more tedious variation isthat the fund manager sub-allocates by manually entering data into anin-house allocation platform. One can imagine the difficulty ofinstructing a financial institution to sub-allocate a 100 equity swapsper day to various funds according to percentages, dates, prices, numberof shares, etc.

What are needed are network-based sub-allocation methods and systemsthat permit parties to an equity swap a high degree of flexibility andcontrol to sub-allocate a large number of equity swaps into variousaccounts.

3. SUMMARY

The invention relates to network-based systems and methods for hostingand operating a network-based platform that allows clients to open andbuild a portfolio-swap account that is subdivided into a plurality ofclient sub-accounts or funds. A portfolio swap is a collection ofindividual swap transactions supporting multi-asset class underlyings.The methods and systems of the invention allow the client tosub-allocate equity-swap transactions among its various clientsub-account or funds as the client deems appropriate. The methods andsystems of the invention are particularly useful to mutual fund managerswho must transact and sub-allocate large numbers of equity swaps among aplurality of funds.

Initially, the client and a third party, such as a financier, negotiateone or more equity swaps. Typically, the financier offers the client anopportunity to enter into a buy or a sell equity swap in connection withparticular equities. Details, such as the trade date, share quantity,execution date, and trading currency are specified. Other details, suchas notational principal are locked in upon settlement.

Thus, for example, the client submits to the financier a sell swap for100,000 shares of stock X; the date of submission is the execution date.The settlement date occurs when the financier locks in the details, suchas the notational principal based on stock X's real-time market price.

According to the invention, the equity swaps are recorded in anetwork-based swap-portfolio account opened for the client. The clientstructures various client sub-accounts within the swap-portfolio accountamong which equity swaps or any portion of the swaps can be allocated.The methods and systems of the invention provide great flexibility inthat they allow the client to conveniently partition equity swaps amongclient sub-accounts in a variety of ways, for example, by number ofshares or as percentages. Even more, the methods and systems of theinvention allow the client to select a plurality of equity swaps forsimultaneous allocation. For instance, in an account of one hundredequity swaps, the client can select ten and allocate a percentage ofeach to a particular sub-account account conveniently over a network.Such sub-allocation would be extremely inconvenient using currentmethods.

4. BRIEF DESCRIPTION OF THE FIGURES

These and other features, aspects, and advantages of the presentinvention will become better understood with regard to the followingdescription, examples, appended claims, and accompanying drawings where:

FIG. 1 is a flow chart outlining a primary embodiment of the invention;

FIG. 2 a is an illustration of a preferred network for use in theinvention;

FIG. 2 b provides the details of a typical platform for use in theinvention;

FIG. 3 illustrates a preferred embodiment of the methods and systems ofthe invention;

FIG. 4 is a diagram of a central station for use in the invention;

FIG. 5 is a web-page screen shot exemplifying client logon;

FIG. 6 is a web-page screen shot of a web page presented to the clientby the platform after logon, which indicates unallocated swaps in aclient's account;

FIG. 7 is a web-page screen shot providing an interface for the clientto sub-allocate;

FIG. 8 is a web-page screen shot of a web page presented to the clientby the platform after logon, which indicates unallocated swaps in aclient's account; and

FIG. 9 is a web-page screen shot where the client has chosen tosub-allocate a particular portion of unallocated swaps.

5. DETAILED DESCRIPTION

FIG. 1 is a flow chart outlining a primary embodiment of the invention.In Step 1, the client receives authorization to access and use anetwork-based swap-allocation platform of the invention, to build aswap-portfolio account and sub-allocate within the various clientsub-accounts that comprise the portfolio. Preferably, the network is theInternet and the platform is a network server. The network-basedswap-allocation platform is operated by a third party, such as financialinstitution, financier, or an independent operator. The client'sswap-portfolio account comprises a plurality of client sub-accountsamong which the client allocates swaps. In Step 2, the client entersinto one or more equity-swap transactions over a period. In Step 3, theequity swaps are recorded in the client's network-based swap-portfolioaccount. In Step 4, the client accesses the network-based platformthrough the network to access his swap-portfolio account. In Step 5, theclient interacts with the network-based platform through the platform'sinterfaces (e.g., web pages) to sub-allocate the equity swaps among theclient's plurality of accounts.

The systems and methods of the invention can be hosted on any network. Apreferred network for use in the invention is illustrated in FIG. 2 a. Aplurality of personal computers 20, are connected to an Internet serviceprovider (ISP) 25 via a network connections 30, such as a modem anddialup telephone line, a digital subscriber line (“DSL”), or a cablemodem connection. Internet service provider 25 interfaces with network35, which comprises a plurality of web content servers 40, includingservers for control of domain-name resolution, routing, and othercontrol functions.

The personal computers typically are configured with common Internettools, including a web browser to access servers 40 and specializedprograms to connect with certain services. These services includeelectronic mail, one-to-many messaging (bulletin board), on-line chat,file transfer, and browsing. Browsing is effected using the HypertextTransfer Protocol (HTTP), which provides users access to multimediafiles using Hypertext Markup Language (HTML). The entire system ofpersonal computers, Internet service providers, and servers is calledthe Internet. The collection of servers 40 that use HTTP comprise theWorld Wide web, which is the Internet's multimedia information deliverysystem.

FIG. 2 b provides the details of a typical platform 40 for use in theinvention. Preferably the platform comprises a server engine 45, whichreceives HTTP requests to access the web pages 50 identified by UniformResource Locator (“URL”) and provides the web pages as an interface tothe requesting personal computer 20. The databases 55 contain varioustables for storing information.

FIG. 3 illustrates an embodiment of the methods and systems of theinvention. Network-based platform 130 (for example, an Internet server)located on central station 125 is provided, for example, by a financier,such as a financial institution or other financial-service provider.Platform 130 comprises interfaces 135 (for example web pages). Theclient first sets up a portfolio-swap account with the financierallowing the client to access and use platform 130 by way of userstation 100.

Any conventional personal computer, computer workstation, or server withsufficient memory and processing capability may be used as centralstation 125. In one embodiment, central station 125 is a financialinstitution's central computer or network of computers. In anotherembodiment, central station 125 is an application service provider or aweb server providing web pages. As is understood by those of skill inthe art, an application service provider is an entity that offersindividuals and enterprises access to applications and related servicesthrough the Internet (or other network) that would otherwise have to belocated in local computers and/or devices.

The client can submit the equity-swap order by traditional means 120,such as telephone, mail, or e-mail. Alternatively, the methods andsystems of the invention can be structured so that the client candirectly submit equity-swap orders from station 100 through interfaces135 of network-based platform 130. The client's equity swaps are enteredinto a database 270 (FIG. 4) located in central station 125 (theclient's swap-portfolio account). The equity swaps can be entered intodatabase 270 by the financier manually, for example, by keyboard.Alternatively, the methods and systems of the invention can bestructured so the client can directly submit and record equity swaps indatabase 270 from station 100 through interfaces 135 of network-basedplatform 130. The client may then access his swap-portfolio account forsub-allocating the equity swaps among its various client sub-accountsusing the methods and systems of the invention.

The client can access his swap-portfolio account from user station 100and sub-allocate though interfaces 135 of platform 130. Preferably, theclient accesses platform 130 from a personal computer 100 by enteringthe appropriate network address and then entering his useridentification and password at the platform's logon interface 135 a.Once the client accesses his account through the network-based platform,the client can use the methods of the invention to allocate his swaps toone or more client sub-accounts.

For example, a mutual-fund client might have a large number of differentfunds among which the fund manager will sub-allocate swaps according thenature of the swap in relation to the particular fund's investmentstrategy, risk, etc. Since the systems and methods of the inventioninvolve platforms based on networks, the client can sub-allocate moreeasily and conveniently than with prior-art methods. Further details ofsub-allocation are illustrated in the Examples section below.

In another embodiment of the invention, the financier and/or the clientcan access network-based trading platform 150 through interfaces 137 ofplatform 136. This is particularly useful to the financier toelectronically make the other financial transactions that are part ofhis swap strategy directly with a market exchange 170.

Any platform that provides an interface offering information concerningfinancial investment is a suitable network-based trading platform foruse in the invention. Preferably, network-based trading platform 150permits electronic transactions with a market exchange 170 and providespricing information regarding one or more commodities, preferably,listed commodities, such as stocks, bonds, futures, options, warrants,swaps, real estate, mortgages (interest rates), currency, or preciousmetals.

It is also preferable that network-based trading platform 150 beaccessible through the Internet. Examples of network-based tradingplatforms suitable for practice of the invention include platformshosted by introducing brokers and futures clearing markets thatinstantaneously mediate binding, direct purchase or sale of listedcommodities with a market exchange 170 through electronic tradingsoftware. As used herein, the phrase “listed commodity” means anycommodity that is listed on an exchange. Examples of exchanges include,but are not limited to, the American Stock Exchange, New York StockExchange, Chicago Board of Exchange, Chicago Board of Trade,International Securities Exchange (options), NASDAQ Stock Market, andthe New York Board of Trade.

5.1.1 Central Station

As shown in FIG. 4, central station 125 comprises central processor unit(“CPU”) 210, random access memory (“RAM”) 220, read only memory (“ROM”)230, clock 240, operating system 250, software of the invention 260, anddata-storage device and databases 270.

Examples of processors suitable for use in the invention include, butare not limited to, those sold by Sun Microsystems, Motorola, and Intel.

The RAM should preferably be of the error-correcting code (ECC) memorytype and should be from 512 MB to 1 GB in total capacity.

The operating system should be robust and provide for security of thedata in storage. Exemplary operating system include LINUX®, UNIX,Windows 2000®, or Windows NT®.

Data-storage device 270 stores information necessary to processtransactions. The data-storage device should provide for re-writabledata and should provide redundancy via mirroring or error correction(RAID), and it should have a fast interface to the operating system sothat data can be made readily available to the network. Suitabledata-storage devices include hard disks.

Software for use in the invention is well known in the art. When centralstation 125 is configured as a web server, conventional communicationssoftware such as Internet Information Server, for delivering web pages,and Internet Explorer, for viewing web pages, by Microsoft Corp. can beused. Software of the invention is readily designed by one of skill inthe art or available commercially.

6. EXAMPLES 6.1 Example 1

FIGS. 5-7 are web-page screen shots illustrating use of the methods andsystems of the invention to sub-allocate swap transactions via aweb-based platform of the invention by way of the Internet. Thefinancier is a financial institution and the client is a mutual fund.The client can interface with the methods and systems of the inventionusing web pages 135 (FIG. 3). In this example, the client mutual fundhas previously setup a swap-portfolio account and entered intotwenty-nine swap transactions with the financial institution.

FIG. 5 is a web page screen shot exemplifying client logon. Referring toFIG. 3, this is first interface 135 a. In this example, the clientstationed at an Internet-connected computer 100 (FIG. 3) is presentedwith FIG. 5 upon entering the appropriate Internet address. Boxes A andB require the client to logon to the platform of the invention 100 (FIG.3) by entering a user identification code (login) and password. Uponacceptance of the password, the client accesses his swap-portfolioaccount.

The platform 100 (FIG. 3) then takes the client to FIG. 6, which is aweb-page screen shot displaying the twenty-nine equity-swap transactionsexecuted by the client, which as yet are unallocated. FIG. 6 provides aninterface for the client to sub-allocate the swaps to particular clientsub-accounts.

In FIG. 6, column A displays boxes corresponding to swap transactions inthe client's swap-portfolio account, which the client may check toselect particular swaps for sub-allocation. In FIG. 6, the client hasselected to sub-allocate the first swap transaction, i.e., 750,000shares of Royal Caribbean Cruise LTD. Column B displays the trade dateor execution date, that is, the date on which the client and financierentered into the swap agreement. Typically, the execution date is thedate the client submits a swap-transaction order. Column C displayswhether the swap is a buy swap or a sell swap. Buy and sell swaps aremore fully described in the Background section above. Column D displaysthe number of equities underlying the swap transaction. Column Edisplays the underlying equities' ticker symbol. Column F displays theequities' identity. Column G displays the share price at which thefinancier purchased the equities underlying the swap transactions alsoreferred to as the settlement price. Column H displays the currency usedto trade the swaps (e.g., NOK means that the Norwegian Kronen was usedto purchase the equity shares and GBP means that British pounds wereused to purchase the shares). Column I displays the currency used tosettle the transactions.

FIG. 6 further shows (entries 1 and 2) that on Mar. 19, 2002, the cliententered into a sell swap with the financier for 1,000,000 shares ofRoyal Caribbean Cruise LTD, i.e., 750,000 shares for $36.00/share and250,000 for $36.15/share. The client checked the first box tosub-allocate the 750,000-share block of Royal Caribbean Cruise LTDpurchased at $36.00/share. Upon clicking the “Submit” button J, theclient electronically submits over the network instructions tosub-allocate Royal Caribbean shares and the network-based platform ofthe invention 130 (FIG. 3) takes the client to the next web page (FIG.7) for sub-allocation.

FIG. 7 is a web-page screen shot providing an interface for the clientto sub-allocate all or portions of selected swaps into the client'sdifferent sub-accounts. Column A indicates whether the swap is a buyswap or a sell swap. Column B displays the execution date. Column Cdisplays the settlement date. Column D displays the underlying equities'ticker symbol. Column E displays the price at which the financierpurchased the equities underlying the swap. Column F displays thecurrency used to trade the shares, and column G displays the currencyused to settle the shares. Column H displays the number of shares thatare sub-allocated. Column I displays the number of shares remainingunallocated after the sub-allocation. And column J indicates thepercentage of equity shares remaining unallocated after thesub-allocation.

In FIG. 7, in box K₁, the client sub-allocates 250,000 shares (33.33%)of the 750,000-share block of Royal Caribbean Cruise LTD checked in FIG.3 to the RA1 sub-account of the De Shaw Investment Group Portfolio LP,and, in box K₂, the client sub-allocates the remaining 500,000 shares(66.66%) to his RA2 sub-account. Advantageously, the methods and systemsof the invention allow partitioning of shares for sub-allocationaccording to user preference, for example, either as a percentage or asa share number. The client then clicks “Go” button L to execute thesub-allocations.

6.2 Example 2

This Example is based on the same facts as Example 1 where the financieris a financial institution and the client is a mutual fund. As above,the client mutual fund has previously setup a swap-portfolio account andentered into twenty-nine swap transactions with the financialinstitution.

FIG. 8 is a web-page screen shot of a web page presented to the clientby the platform after logon. FIG. 8 presents the client with thetwenty-nine unallocated swaps. But differing from Example 1, in whichthe client selected only Royal Caribbean Cruise LTD for sub-allocation(see FIG. 6)—the client has checked every box to sub-allocate alltwenty-nine swaps at once. The client is then taken to the next webpage, FIG. 9.

FIG. 9 is a web-page screen shot where the client, in box K, has chosento sub-allocate seventy-five percent of each of the twenty-nineunallocated swaps checked in FIG. 8 to the De Shaw Investment GroupPortfolio LP RA1. In this example, for the client's convenience, theplatform has combined the swaps having the same underlying equities andpurchased on the same date into single entries. For example, theplatform has combined the 750,000 and 250,000 shares of Royal CaribbeanCruise LTD purchased on Mar. 19, 2002, for $36.00/share and $36.15/sharerespectively, into a single entry of 1,000,000 shares having an averageshare price of $36.0375/share.

6.3 DEFINITIONS

As used herein, the term “network” means any system of two or moreinterconnected computers. Examples of networks include, but are notlimited to, the Internet and other Wide Area Networks (WANs), and LocalArea Networks (LANs).

As used herein, the phrase “network connection” means any channel bywhich a person, party, or business entity can interface or communicatewith a network. Examples of network connections include, but are notlimited to, telephone lines by way of internal or external modems,digital subscriber lines (“DSL”), connections to voice mail and voicepages; dedicated data lines; cellular phone communication; communicationby way of satellite; and cable television lines.

As used herein, the term “platform” means a system of hardware and/orsoftware located on a network that performs a function, such asproviding services or information, and which is accessible through anetwork interface. Examples of platforms include, but are not limitedto, network-based computers, such as Internet servers; voice-mailsystems; and voice-page systems.

As used herein, the term “interface” means a displayed or transmitted,user friendly set of pictures, text, voice statements, or othercommunication means that provide instructions and protocols indicatinghow a user is to communicate and interact with a platform. For example,an interface allows a user to direct computer software located on theuser's computer or within a network. Examples of interfaces include, butare not limited to, web pages, e-mail transmittals, voice pages, voicemail instructions, and facsimile transmissions (fax). An interface isdisplayed or provided by an “interface provider”, for example, apersonal computer displaying a web-page interface.

As used herein, the term “automatically” means execution by computersoftware upon occurrence of an event or satisfaction of a conditionwithout instruction from or intervention of a user.

As used herein, the term “commodity” means any good or service that canbe purchased or sold.

As used herein, the phrase “listed commodity” means any commodity thatis listed on an exchange. Examples of exchanges include, but are notlimited to, the American Stock Exchange, Chicago Board of Exchange,Chicago Board of Trade, International Securities Exchange (options),NASDAQ Stock Market, and the New York Board of Trade.

As used herein, the phrase “exchange rate” means the price listed by anexchange for a listed commodity at a particular time.

6.4 CONCLUSION

In view of the above Background, Summary, Figures, and DetailedDescription presented above, it is clear that in certain embodiments,the invention comprises a method for sub-allocating one or more swapsamong a plurality of accounts comprising:

(a) accessing a network-based platform comprising the plurality ofaccounts;

(b) displaying the one or more swaps on an interface;

(c) selecting at least one of the one or more swaps by way of theinterface; and

(d) sub-allocating the selected swap into one or more of the pluralityof accounts by way of the interface.

In another embodiment, the invention is directed to a system forsub-allocating one or more swaps among a plurality of accountscomprising:

(i) a memory storage device;

(ii) a computer processor connected to the storage device;

(iii) one or more computer software programs for controlling thecomputer processor;

wherein the memory storage device and the processor are operative withthe programs to:

(a) access a network-based platform comprising the plurality ofaccounts;

(b) display the one or more swaps on an interface;

(c) allow a user to interact with the interface to select at least oneof the one or more swaps; and

(d) allow a user to interact with the interface to sub-allocate theselected swap into one or more of the plurality of accounts.

In still another embodiment, the invention is directed to a computerreadable medium programmed with computer software that is operative tocause a system comprising a memory storage device and a processor to:

(a) access a network-based platform comprising a plurality of accounts;

(b) display one or more swaps on an interface;

(c) allow a user to interact with the interface to select at least oneof the one or more swaps; and

(d) allow a user to interact with the interface to sub-allocate theselected swap into one or more of the plurality of accounts.

Although the present invention has been described in considerable detailwith reference to certain preferred embodiments and versions, otherversions and embodiments are possible. Therefore, the scope of theappended claims should not be limited to the description of the versionsand embodiments expressly disclosed herein.

1-26. (canceled)
 27. A computer-implemented method for sub-allocatingswaps among accounts of a user, comprising: (a) providing anetwork-based platform through a programmable computer to a user,wherein the user accesses the network-based platform through aninterface connected to the network-based platform, wherein thenetwork-based platform comprises (i) accounts of the user and (ii) arecord of unallocated swaps that have been entered into by the user anda financier, wherein the unallocated swaps comprise swaps having thesame underlying equities and purchased on the same day; (b) receiving aselection made by the user through the interface of unallocated swaps tobe allocated into the accounts; (c) identifying through the computerselected swaps having the same underlying equities and purchased and thesame day and combining the identified swaps; and (d) sub-allocatingthrough the computer the selected swaps and combined swaps into theaccounts of the user.
 28. The method of claim 27, wherein the user is amutual fund and the financier is a financial institution.
 29. The methodof claim 27, wherein the interface is a web page.
 30. The method ofclaim 27, wherein the network-based platform is an Internet server. 31.The method of claim 27, wherein the selection of unallocated swaps bythe user comprises a percentage of the unallocated swaps to beallocated.
 32. The method of claim 27, wherein the selection ofunallocated swaps by the user comprises a number of shares of theunallocated swaps to be allocated.
 33. The method of claim 27, furthercomprising executing a financial transaction by way of the network-basedplatform.
 34. A system for sub-allocating swaps among accounts of a usercomprising: (i) a memory storage device; (ii) a computer processorconnected to the storage device; (iii) one or more computer softwareprograms for controlling the computer processor; wherein the memorystorage device and the processor are operative with the programs to: (a)provide a network-based platform accessible by the user through aninterface connected to the network-based platform, the network-basedplatform comprising (i) accounts of the user and (ii) a record ofunallocated swaps that have been entered into by the user and afinancier, wherein the unallocated swaps comprise swaps having the sameunderlying equities and purchased on the same day; (b) receive aselection made by the user of unallocated swaps to be allocated into theaccounts; (c) identify selected swaps having the same underlyingequities and purchased and the same day and combine the identifiedswaps; and (d) sub-allocate the selected swaps and combined swaps intothe accounts of the user.
 35. The system of claim 34, wherein theinterface is a web page.
 36. The system of claim 34, wherein theaccounts are mutual funds.
 37. The system of claim 34, wherein thememory storage device and the processor are operative with the programsuch that the user may interact with the interface to instruct thenetwork-based platform to sub-allocate the selected swaps and combinedswaps into the accounts by entering a percentage of the selected swapsand combined swaps to be allocated.
 38. The system of claim 34, whereinthe memory storage device and the processor are operative with theprogram such that the user may interact with the interface to instructthe network-based platform to sub-allocate the selected swaps andcombined swaps into the accounts by entering a number of shares selectedswaps and combined swaps to be allocated.
 39. The system of claim 34,wherein the memory storage device and the processor are furtheroperative with the program such that the user may enter into the swapsthrough the network-based platform.
 40. The system of claim 34, whereinthe memory storage device and the processor are further operative withthe program such a financial transaction may be executed through thenetwork-based platform.
 41. The system of claim 40, wherein thefinancial transaction is purchase or sale of a listed commodity.
 42. Acomputer readable medium programmed with computer software that isoperative to cause a system comprising a memory storage device and aprocessor to: (a) provide a network-based platform accessible by theuser through an interface connected to the network-based platform, thenetwork-based platform comprising (i) accounts of a user and (ii) arecord of unallocated swaps that have been entered into by the user anda financier, wherein the unallocated swaps comprise swaps having thesame underlying equities and purchased on the same day; (b) receive aselection made by the user of unallocated swaps to be allocated into theaccounts; (c) identify selected swaps having the same underlyingequities and purchased and the same day and combine the identifiedswaps; and (d) sub-allocate the selected swaps and combined swaps intothe accounts of the user.
 43. The computer-readable medium of claim 42,wherein the interface is a web page.
 44. The computer-readable medium ofclaim 42, wherein the accounts are mutual funds.
 45. Thecomputer-readable medium of claim 42, operative such that the user mayinteract with the interface to instruct the network-based platform tosub-allocate the selected swaps and combined swaps into the accounts byentering a percentage of the selected swaps and combined swaps to beallocated.
 46. The computer-readable medium of claim 42, operative suchthat the user may interact with the interface to instruct thenetwork-based platform to sub-allocate the selected swaps and combinedswaps into the accounts by entering a number of shares of the selectedswaps and combined swaps to be allocated.